Chipotle 2008 Annual Report Download - page 48

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Foreign Currency Translation
The Company’s international operations generally use its local currency as the functional currency. Assets
and liabilities are translated at exchange rates in effect as of the balance sheet date. Income and expense accounts
are translated at the average monthly exchange rates during the year. Resulting translation adjustments are
recorded as a separate component of accumulated other comprehensive income (loss) in shareholders’ equity.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily
of cash and cash equivalents, available-for-sale securities, and accounts receivables. The Company invests its
cash and cash equivalents with financial institutions consistent with its investment policy. The Company’s cash
and securities balances may exceed federally insured limits. Credit card transactions at our restaurant are
processed by one service provider. Concentration of credit risk related to accounts receivables are limited, as the
Company’s receivables are primarily with its landlords for the reimbursements of tenant improvements.
Adoption of New Accounting Standard
Effective January 1, 2008, the Company adopted FASB Standard No. 157, Fair Value Measurements,
(“FAS 157”). FAS 157 defines fair value, establishes a framework for using fair value to measure assets and
liabilities, and expands disclosure about fair value measurements. FAS 157 applies whenever other statements
require or permit assets or liabilities to be measured at fair value. The adoption of FAS 157 did not have an
impact on the Company’s consolidated financial statements.
2. Supplemental Financial Information
Leasehold improvements, property and equipment were as follows:
December 31
2008 2007
Land ........................................................ $ 8,215 $ 8,215
Leasehold improvements and buildings ............................. 589,283 489,760
Furniture and fixtures ........................................... 63,100 52,300
Equipment .................................................... 116,763 95,651
777,361 645,926
Accumulated depreciation ....................................... (191,462) (150,996)
$ 585,899 $ 494,930
Accrued liabilities were as follows:
December 31
2008 2007
Gift card liability .................................................. $ 8,013 $ 9,042
Sales tax payable .................................................. 6,842 5,645
Other accrued expenses ............................................. 13,492 12,448
$28,347 $27,135
46
Annual Report